Reflective Essay on Revenue Management and Operational Success Program

This reflective essay explores the critical relationship between revenue management and operational success, drawing from theoretical concepts and practical experiences gained through a simulation program. The author reflects on a group project focused on analyzing a hotel's occupancy rate and revenue management strategies, highlighting the importance of managing profits and reinvesting them for long-term business success. The essay discusses the concept of revenue management, also known as yield management, and its relevance in industries with fixed capacity, perishable inventory, and segmented markets. It emphasizes the significance of the 'four Cs'—calendar, clock, capacity, and cost—in achieving operational success. The author concludes by acknowledging the enhanced understanding of revenue management and operational success gained through the program, emphasizing the value of teamwork and the application of theoretical concepts to real-world scenarios. Desklib provides access to this and other solved assignments.

Running head: REFLECTIVE ESSAY
REFLECTIVE ESSAY
Name of the Student
Name of the University
Author Note

1REFLECTIVE ESSAY
Introduction
Revenue Management can be defined as the theory in operational management which is
concerned with the maximization of the revenue or achievement of the maximum yield which
can be derived out of an available capacity at a given point of time (Legohérel, Fyall & Poutier,
2013). It is necessary to manage the revenue of a business because the earnings of the business
enterprise denote the success of it and the effectiveness of the given business practice. It is
greatly related to selling the right product to the right customer at a given point of time at a price
which is perfect for the long term for the firm. Operational success is greatly related to the
effective management of the revenue and hence, they are dependent on one another (Board &
Skrzypacz, 2016). In the given essay, I will be reflecting on the theories and practical examples
which I went through during the simulation program. We undertook various group projects
which helped to increase our knowledge about the particular subject and also went a long way in
developing our ideas.
Experience
In the group projects undertaken by us, we aimed to understand the occupancy rate of a
hotel as measured against the capacity. The scenario about the hotel was provided to use which
was followed by an analysis of the current management of the hotel in terms of operational
success and management of the revenue (Afeche, 2013). It was observed that the hotel was not
able to manage the operations successfully and that it could have applied the theory of revenue
management and ensured that it was able to operate to its full capacity.
In the theory of revenue management it could be stated that, although profit generation is
crucial, managing those profits and investing them back to the business is considerably important

2REFLECTIVE ESSAY
in order to ensure that the business is able to ensure long term success and give in their best. I
believe that the given project went a long way in assisting me to develop my revenue
management skills and apply them in the real world scenario.
Personal Assessment
The experience of working in a team for the different projects and the amalgamation of
ideas contributed to my personal development with respect to the different concepts of the
subject. At first, before taking the simulation program and the course I did not believe that
revenue management is this important for the long term welfare of the organization but later as
we got into the given case, I found that I was not well prepared to conduct an analysis on the real
company and for this reason I revised my concepts in order to strengthen my base. Revision of
the concepts helped in proper analysis of the case.
Analysis
According to Mauri (2013), earnings can be defined as a significant measure of
effectiveness in a business and different industries tend to manage and handle their turnover in a
different manner. The concept of revenue management is also known as yield management. The
theory of revenue management and related operational success is most relevant for the industries
where there exists a relatively fixed capacity, perishable inventory, the products are sold in
advance and there are existent segment markets. The concept was primarily prepared by the
airline industry and was later on adopted by the hotels, television broadcasters and other related
service business houses.
It deals with effective application of various different information systems and strategies
so as to ensure that the profits are maximized.

3REFLECTIVE ESSAY
For instance, in a hotel, the managers identify different market segments, create discount
packages and form different rules for implementation to form the ideal mic for the business
(Ivanov, 2014). Operational success can be delivered only when there is an idea mix of the four
Cs of the perishable service (Chen & Schwartz, 2013).
These Cs are the calendar, clock, capacity and cost. When an optimum mix up of these
four Cs are observed then the business will be able to achieve success in the given domain.
Conclusion
Therefore, from the given analysis, it could be stated that I have been able to understand
and attain a great deal of information in relation to the revenue management and operational
success through the given program. The program cleared my misconceptions, provided me with
real examples and allowed me to apply the theoretical concepts for the learning of the case study.
Working in a team further allowed by to extend my horizons and understand other`s views.
Hence, from the given analysis it could be stated that revenue management and operational
success are integral part of the business and assist the service industries to attain success.

4REFLECTIVE ESSAY
References
Afeche, P. (2013). Incentive-compatible revenue management in queueing systems: optimal
strategic delay. Manufacturing & Service Operations Management, 15(3), 423-443.
Board, S., & Skrzypacz, A. (2016). Revenue management with forward-looking buyers. Journal
of Political Economy, 124(4), 1046-1087.
Chen, C. C., & Schwartz, Z. (2013). On revenue management and last minute booking
dynamics. International Journal of Contemporary Hospitality Management, 25(1), 7-22.
Ivanov, S. (2014). Hotel revenue management: From theory to practice. Zangador.
Legohérel, P., Fyall, A., & Poutier, E. (Eds.). (2013). Revenue management for hospitality and
tourism. Woodeaton: Goodfellow Publishers.
Mauri, A. G. (2013). Hotel revenue management: Principles and practices. Pearson Italia Spa.